ARA launches new real estate management division

ARA Asset Management Limited has launched its real estate management services business division after being appointed property manager of Suntec REIT’s Suntec City Properties.

This follows the successful completion of the acquisition of Suntec City Management Pte. Ltd., the managing agent of the Suntec City MCST, responsible for the management and maintenance of the common property of the complex, pursuant to a sale and purchase agreement dated 7 October 2009.

SCM, which has been renamed “APM Property Management Pte. Ltd.” , subsequently entered into a property management agreement with ARA Trust Management (Suntec) Limited, as manager of Suntec REIT, and HSBC Institutional Trust Services (Singapore) Limited, as trustee of Suntec REIT, to provide property management services for Suntec REIT’s Suntec City Properties. Susan Sim, an industry veteran with over 18 years of experience, has been appointed as CEO of APM.

ARA Group CEO John Lim comments, “The acquisition of APM, with its team of experienced professionals, not only provides immediate earnings accretion but also adds valuable property management expertise to ARA. APM and Suntec Singapore, the Group’s convention & exhibition services team, will form the nexus of ARA’s new real estate management services business division which will complement and support our core real estate fund management businesses.

Going forward, ARA will seek to leverage its enhanced control over the Suntec City complex to fully exploit the potential of this iconic development, as well as grow the real estate management services business division in tandem with the expansion of the Group’s REITs and private funds businesses.”

The appointment as the property manager for the Suntec City Properties and the acquisition of the managing agent of the Suntec City MCST are expected to contribute approximately 0.5 Singapore cents per share to ARA’s earnings per share for the financial year ending 31 December 2010.